BEHAVIORAL FACTORS AND INVESTMENT DECISION: A STUDY ON THE CAPITAL MARKET OF BANGLADESH

Authors

  • Tamanna Islam Assistant Professor, Bangladesh Institute of Capital Market (BICM), Bangladesh
  • S. M. Kalbin Salema Lecturer, Bangladesh Institute of Capital Market (BICM), Bangladesh
  • Maruf Billah Senior Principal Officer, Investment Corporation of Bangladesh, Bangladesh

DOI:

https://doi.org/10.58964/JBA44N205

Keywords:

Behavioral Factors, Investment Decision, Capital Market

Abstract

This study aims to examine the influence of investors’ behavioral factors on their investment decision. This study also tries to find the moderating role of investors’ past investment experience between investment decision and capital market performance. The sample was selected through a structured survey questionnaire. A total of 370 questionnaires, distributed to the existing investors of Bangladesh capital market, were used for analysis. The results from the structural analysis suggest that rational and irrational behavior factors influence the investors’ investment decision in capital market. Furthermore, investors’ past investment experience moderates the relation between investment decision and capital market performance. The results show that for rational and irrational behavioral factors, the investors collect complete financial information and based on this information, they make investment decision.

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Published

17.02.2024

How to Cite

Islam, T., Salema, S. M. K., & Billah, M. (2024). BEHAVIORAL FACTORS AND INVESTMENT DECISION: A STUDY ON THE CAPITAL MARKET OF BANGLADESH. Journal of Business Administration, 44(2), 101–125. https://doi.org/10.58964/JBA44N205

Issue

Vol. 44 No. 2 (2023): Journal of Business Administration

Section

Articles